June 12, 2009

Cost reduction program process continues

Portland Aluminium’s aim to reduce cost by 10-15 per cent and manage the 15 per cent curtailment announced in late April is continuing, after a scheduled meeting yesterday with Australian Workers Union. 

The process of working with employees, contractors, suppliers and unions to achieve the cost reduction targets continues as planned as the company strives to remain sustainable.

Portland Aluminium Operations Manager John Osborne said the consultative process with these groups to identify opportunities to reposition the business to manage the curtailment and  ensure the long term sustainability of Portland Aluminium have been established and generated more than 500 ideas to reduce costs.

“The cost-saving ideas have been categorised and analysed in terms of priority and benefit to the business,” Mr Osborne said.
Yesterday’s meeting also discussed proposed operating models for each area.

“From the outset it was acknowledged that some positions may be lost.  Based on the proposals discussed yesterday, this may total 39 operating positions.”

Mr Osborne explained the cost reduction process will continue and the proposals currently being reviewed were essential for Portland Aluminium to manage the impacts of the global financial crisis and ensure its long term sustainability.

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